1. Field
Embodiments of the present invention generally relate to financial transactions, particularly to post-authorization processing of the financial transactions.
2. Background Art
Financial transactions that use debit cards, credit cards and other similar cashless methods of purchasing products are increasingly becoming popular. In a cashless financial transaction, a consumer provides his/her card details to a merchant while placing a purchase order. The merchant then sends an authorization request including these details to a financial institution for seeking an authorization of the financial transaction. The financial institution makes a decision whether to authorize the merchant for carrying out the transaction, and transmits it to the merchant for execution. The merchant is then authorized to process or fulfill the purchase order. However, even when authorization is received from the financial institution, the merchant has a right to not process the purchase order for several reasons, such as stock limitations with the merchant, high fraud risk, order-timeline problems, and the like. Therefore, in any of such cases, the merchant may not process the purchase order, even though it is authorized by the financial institution.
Presently, the financial institution is informed about the completion of the financial transaction through the submission of a payment request made by the merchant corresponding to various financial transactions that the merchant has fulfilled in a given time frame. Transactions which were not completed, even if authorized, are not included in the payment request. The financial institution does not know that the transaction was not completed until the authorizations provided in the given time frame are reconciled with the payment request submitted by the merchant. Further, the financial institution is unaware of the reason for non-fulfillment of the financial transaction.